COP MARKET UPDATE NEWS BY RIPPLES ADVISORY


CPO on MCX settled up 0.51% at 566.7 taking positive cues from spot market. In the domestic market, the stocks are sufficient and the demand is also on lower side. The tariff value of CPO increase by $16 to $780/tonne for the 2nd half of Dec compared to previous fortnight. This is fourth straight increase but still lower than the September tariff price. In domestic market, the prices are following the international market as country is depending on the imports. As per SEA data, Palm oil imports fell by 8.27% to 8,01,311 tonnes in Nov this year, on expected bumper oilseeds crop and better domestic edible oils supply. As per USDA, the imports in 2016/17 will be higher by 14% to 10 mt and consumption too increases by 11% in India.
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                               Technically market is under short covering as market has witnessed drop in open interest by -9.37% to settled at 1876 while prices up 2.9 rupee, now CPO is getting support at 559.8 and below same could see a test of 552.9 level, And resistance is now likely to be seen at 570.5, a move above could see prices testing 574.3.           

    Trading Ideas

1 CPO trading range for the day is 552.9-574.3.
2 As per SEA data, Palm oil imports fell by 8.27% to 8,01,311   tonnes in Nov this year, on expected bumper oilseeds crop and better domestic edible oils supply.
3 As per USDA, the imports in 2016/17 will be higher by 14% to 10 mt and consumption too increases by 11% in India.
4 Crude palm oil prices in spot market dropped by 3.90 rupees and settled at 562.50 rupees.

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